EMERGING MARKETS-Latam stocks, currencies rally on U.S. rate outlook
By Bruno Federowski SAO PAULO, Sept 22 (Reuters) - Latin American stocks and currencies rallied for a second day on Thursday as traders doubled down on bets that the U.S. Federal Reserve will raise interest rates slowly. Fed policymakers reduced their forecasts of annual rate increases to two from three for 2017 to 2018 in their policy statement on Wednesday. The move caught some traders by surprise after conflicting remarks by Fed officials had revived bets on an aggressive hiking cycle. "This could trigger strong inflows into emerging markets," said Tarcísio Rodrigues, head of currency trading with Brazil's Banco Paulista. The Mexican peso strengthened for a second straight day after weakening to historic lows this week, also supported by a rise in crude oil prices. But many analysts believe the peso is poised to lose further, weighed down by uncertainty over the outcome of the U.S. presidential election in November. Shares of Brazilian state-controlled oil company Petróleo Brasileiro SA advanced, supporting the country's benchmark Bovespa stock index. The chief executive officer of Petrobras, as the company is known, told Reuters on Wednesday a U.S. class-action lawsuit on corruption will not overshadow the firm's $74 billion, five-year plan to slash its crippling debt. Key Latin American stock indexes and currencies at 1445 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 921.64 1.77 14.04 MSCI LatAm 2432.59 2.75 29.39 Brazil Bovespa 59289.23 1.53 36.77 Mexico IPC 47516.65 1.25 10.56 Chile IPSA 4101.83 0.67 11.46 Chile IGPA 20392.78 0.57 12.35 Argentina MerVal 16548.47 1.57 41.74 Colombia IGBC 9971.31 0.93 16.66 Venezuela IBC 12180.58 1.13 -16.50 Currencies daily % YTD % change change Latest Brazil real 3.1950 0.46 23.54 Mexico peso 19.6300 0.56 -12.23 Chile peso 656.2 1.31 8.15 Colombia peso 2850 1.43 11.20 Peru sol 3.352 0.45 1.85 Argentina peso (interbank) 15.1800 -0.23 -14.48 Argentina peso (parallel) 15.64 0.26 -8.76 (Reporting by Bruno Federowski; Editing by Dan Grebler)
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